The bids are coming in rapidly for 3 PAR. 3PAR barely had time to digest Dell’s $1.8 billion offer this morning before Hewlett-Packard raised its offer to $2 billion.
Storage Systems vendor 3PAR has now received four bids in two days and six in two weeks with Dell and HP making three offers apiece.
Dell disclosed this morning that it would match the $1.8 billion offer HP made Thursday evening. 3PAR was obligated to accept that offer under terms of its original agreement with Dell that gives Dell the right to match competing bids. Dell opened the bidding at $1.15 billion Aug. 16, and HP bid $1.6 billion on Monday. On Thursday morning, Dell raised HP’s bid by $20 million and HP countered with its $1.8 billion bid after the market closed.
3PAR’s board has accepted all of Dell’s offers and none of HP’s, which seems to indicate 3PAR management favors Dell. However, 3PAR has to accept any matching bid due to its original agreement with Dell. That agreement also allows 3PAR to negotiate with any company that makes a superior offer. That means HP – or another company – can win even if 3PAR management prefers Dell. 3PAR is legally bound to send any superior offers to its shareholders, who will ultimately pick the winner.